150 Old Shoals Road, Arden, NC, 28704, US

150 Old Shoals Road

Asset Description

Jones Lang LaSalle Americas, Inc. (“JLL”) has been retained as the exclusive sales representative for 150 Old Shoals Road (“the Property”) – a 56,744 square foot newly-renovated logistics facility located in the Asheville, North Carolina MSA. The Property is 100% leased to TE Connectivity Corporation (“TE Connectivity” | NYSE: TEL; S&P/Fitch: A-) on a fresh 10-year lease, presenting investors with secure cash flow from best-in-class tenancy and robust 3.75% annual rent escalations. TE Connectivity is a global design and manufacturing company specializing in the production of world-class industrial technologies - most recently posting $15.8 billion of net sales in FY2024.

The Property has been the beneficiary of significant capital improvements from Ownership and tenant, including a new 60 mil TPO roof (36,000 SF) under warranty through 2045, HVAC replacements, updated painting scheme, and landscaping, amongst others. Furthermore, the Property is strategically located within three (3) miles of I-26, offering excellent connectivity to the fast-growing Asheville MSA, including direct connectivity to I-40 in the north and the I-85 industrial super corridor to the south. The Asheville industrial market in which the facility is located continues to post strong fundamentals, sporting an average 10-year vacancy rate of less than four percent (4.0%) and robust asking rent growth greater than 45% since 2020.

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Attributes

Building area net

5,272 m²

Occupancy

100%

WALT

10 years

Tenant credit rating

Lease type

Net lease (N/NN/NNN)

Media

Investment Highlights

LONG TERM CASH FLOW WITH STRONG CONTRACTUAL YIELD EXPANSION

• 100% leased to TE Connectivity Corporation (“TE Connectivity” | NYSE: TEL; S&P/Fitch: A-) on a fresh 10-year lease

• Robust contractual yield expansion via 3.75% annual escalations

• Attractive 5-year Fair Market Value (FMV) renewal options at the greater of i) 103.75% of immediately preceding base rent or ii) FMV

HIGH-PERFORMING GLOBAL TENANCY

• TE Connectivity is multinational technology company servicing the automotive, aerospace, defense, industrial, medical, and communications sectors

• $15.8 billion net sales in fiscal year 2024 and an average 32% gross margin since 2017

• 235 billion products manufactured annually supported by over 87,000 employees servicing a wide customer base across 130 countries

NEWLY-RENOVATED FACILITY

• Brand-new 60 mil TPO roof (36,000 SF) under warranty through 2045

• Upgraded dock doors with loading packages

• Six (6) new HVAC units (6-20 ton capacity)

• Refurbished office, parking lot repaving, updated landscaping, amongst others

FUNDAMENTALLY SOLID INDUSTRIAL MARKET

• Totaling 27.6 MSF of inventory, the Asheville industrial market continues to perform, sporting an average 10-year vacancy rate of less than four percent (4.0%)

• Vacancy rates remain constrained across small footprint industrial, most recently tightening to 1.9% across suites less than 75,000 SF (Q4 2024)

• Asking rents have continued to escalate due to a supply-demand imbalance with average NNN rents increasing by more than 45% since 2020 (+7.8% CAGR)

CENTRALIZED LOGISTICS LOCATION

• Situated within three (3) miles of I-26, providing excellent connectivity to I-40 and the entirety of the Asheville MSA

• Located at the midpoint between Asheville and Spartanburg, providing access to the robust blue-collar labor pool of the Blue Ridge region of North Carolina and Upstate South Carolina via I-85

• Access to over 4,900,000 U.S. citizens within a ninety (90) mile radius